en Fortunes Will Be Made & Lost When Capital Flees To Safety <p><em>Submitted by Adam Taggart of <a href="">PeakProsperity</a></em><a href=""></a></p> <p><strong>Fortunes Will Be Made &amp; Lost When Capital Flees To Safety</strong></p> <p>Little did I realize when creating the short video below how prescient it would quickly become in the wake of last night's Brexit vote... </p> <p>Its message is simple: there's a preponderance of data that shows the world's major asset markets are dangerously overvalued. And when these asset bubbles start to burst, the 'save haven' markets that investment capital will try to flee to are ridiculously small. Investors who do not start moving their capital in advance of crisis will be forced to pay much higher prices for safety - or may find they can't get into these haven assets at any price:</p> <p><iframe src="" width="640" height="360" frameborder="0"></iframe></p> <p>&nbsp;</p> <p>The aftermath of last night's Brexit vote is providing us with ample validation of the video's thesis.&nbsp; </p> <p>Stock prices immediately plunged:</p> <p><img src="" width="620" height="217" /></p> <p>The US dollar surged:</p> <p><img src="" width="620" height="221" /></p> <p>Gold put in a $100/oz reversal (which has since moderated a bit):</p> <p><img src="" width="620" height="217" /></p> <p>And Bitcoin jumped:</p> <p><img src="" width="620" height="222" /></p> <p>&nbsp;</p> <p>And look at the capital fleeing derivatives like sovereign credit default swaps. Losses of over 30% in a matter of hours. Yikes!</p> <p><img src="" width="620" height="419" /></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="645" height="431" alt="" src="" /> </div> </div> </div> Bitcoin Credit Default Swaps default Sat, 25 Jun 2016 18:28:53 +0000 Tyler Durden 564553 at Not So Fast: Scotland And Northern Ireland May Have Brexit Veto Rights <p>Two days after the shocking Brexit result, the nightmares for the Remain camp - which refuses to accept a democratic reality - will not go away. As a result, it has gotten to the farcical point where disgruntled Remain voters have <a href="">launched a petition demanding </a>a second EU referendum, having clearly forgotten that it was the dramatically low turnout among their ranks that allowed the Leave vote to have such a knockout victory. To be sure this is a well-known technocrat approach: keep voting and <em>re</em>voting until the desired outcome is finally achieved. </p> <p><a href=""><img src="" width="600" height="500" /></a></p> <p>We doubt this particular approach has any hope of success. We also doubt that a call by Labor MP David Lammy, urging for a vote in Parliament to "<em><strong>stop this madness"</strong></em>, the madness in question being the will of the majority, which clearly is not appreciated by a member of a "democratically" elected institution. One can spend all day analyzing the amusing ironies in that statement.</p> <blockquote class="twitter-tweet"><p dir="ltr" lang="en">Wake up. We do not have to do this. We can stop this madness through a vote in Parliament. My statement below <a href=""></a></p> <p>— David Lammy (@DavidLammy) <a href="">June 25, 2016</a></p></blockquote> <script src="//"></script><p>&nbsp;</p> <p>However, while these are merely desperation antics by a group who will do almost anything to hang on to the benefits presented to them by the status quo, regardless of the will of the majority, a curious observation has emerged courtesy of <a href="">Jim Fitzpatrick</a>, who points out that according to the 28-page government Command Paper laying out "<em><strong><a href="">The Process of withdrawing from the European Union</a>", </strong></em>which goes through the infamous Article 50 of the Treaty on European Union (TEU), the first time in history when Article 50 will be invoked, <strong>there may actually be a hurdle to the actual Brexit process, in the form of a Scottish and Northern Irish veto to Britain's separation from the EU. </strong>To wit:</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p><strong>The role of the devolved legislatures in implementing the withdrawal agreement: </strong></p> <p>&nbsp;</p> <p>We asked Sir David whether he thought the Scottish Parliament would have to give its consent to measures extinguishing the application of EU law in Scotland. He noted that such measures would entail amendment of section 29 of the Scotland Act 1998, which binds the Scottish Parliament to act in a manner compatible with EU law, <strong>and he therefore believed that the Scottish Parliament’s consent would be required. He could envisage certain political advantages being drawn from not giving consent. </strong></p> <p>&nbsp;</p> <p>We note that the European Communities Act is also entrenched in the devolution settlements of Wales and Northern Ireland. Though we have taken no evidence on this specific point, <strong>we have no reason to believe that the requirement for legislative consent for its repeal would not apply to all the devolved nations</strong>.</p> </blockquote> <p>To be sure, this is merely an <em><strong>interpretation </strong></em>and not a legalistic prescription. The basis of this opinion is as follows: </p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>In February 2016, the Government published a Command Paper entitled <strong>The process for withdrawing from the European Union,</strong> the findings of which have <strong>been widely challenged by those campaigning to leave the EU. </strong>We wanted to have as clear an understanding as possible of the process whereby the UK would withdraw from the EU, should the electorate so decide on 23 June. We therefore held a public evidence session with two experts in the field of EU law: Sir David Edward KCMG, QC, PC, FRSE, a former Judge of the Court of Justice of the European Union and Professor Emeritus at the School of Law, University of Edinburgh; and Professor Derrick Wyatt QC, Emeritus Professor of Law, Oxford University, and also of Brick Court Chambers.</p> </blockquote> <p>So is one interpretation of Article 50 on the potential stumbling block behind Brexit sufficient to derail the process? We doubt it: David Cameron has already resigned while Europe has activated the machinery for a British separation (even if it means keeping the UK as an "associated member" as Germany desperately needs the UK market to keep its own economy afloat). Then again, anything is possible and we are certain that thousands of lawyers are working feverishly at this moment to preserve any optionality the Remain group may still have before too much time has passed and enough procedures have been implemented making a return to the status quo impossible.</p> <p>Further complicating matters is the announcement by Scotland's first minister Nicola Sturgeon who said <a href="">that a second Scottish independence vote 'highly likely' </a>adding that it was "democratically unacceptable" that Scotland faced the prospect of being taken out of the EU against its will. She said the Scottish government would begin preparing legislation to enable another independence vote.</p> <p>Whatever the outcome, it is certain that the status quo elites, who already lost hundreds of billions in equity "value" as a result of Brexit, will stop at nothing to prevent the existing globalized system from being deconstructed before their very eyes due to the "unexpected" arrival of democratic forces which demand real change. This will surely mean spending egregious amounts trying to find legalistic loopholes, and doing everything in their power to delay and prevent any incremental steps. </p> <p>All of that is perfectly expected. That said we wonder if the same elitist minorities, which have already shown boundless disdain for the voice of the majority, will keep their interventionism within a peaceful framework because the last thing the world needs is for a tiny majority to start yet another global war to distract from their accelerating loss of influence and power. Then again, just like in the 1930s when the world was also squeezed in a global depression, the <em><strong>only thing </strong></em>that can boost the fortunes of the 1% <em><strong>is </strong></em>war. </p> <p>Why is why war is the inevitable outcome that a world saddled with gargantuan amounts of debt, borrowed from a future that has no growth prospects, will get. We can only hope that Brexit is not the spark to this outcome.</p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="1920" height="1080" alt="" src="" /> </div> </div> </div> European Union Germany Ireland Reality Twitter Twitter Sat, 25 Jun 2016 17:48:15 +0000 Tyler Durden 564552 at Historic, Mind Boggling Rise In Gold Open Interest Friday <p>June 25 - Gold $1315.60 - Silver $17.72</p> <p>"There are no markets anymore, just interventions." … Chris Powell, April 2008</p> <p>GO GATA!</p> <p>Friday was a historic one for a number of reasons. One of them leaps off the charts this morning in our gold/silver sector world.</p> <p>Due to the unexpected and stunning Brexit vote, the price of gold began to take off like a cat on a hot tin roof, as you know. At one point gold shot up just pennies shy of $100 an ounce … a price move that my friend John Embry has long said is needed to show The Gold Cartel is in the biggest of trouble. How close that came. Course, the real deal $100 up day has to be on a closing basis.</p> <p>The jolting uncertainty over how that vote, and developing ramifications, will affect the world economic scene created a surge of interest in gold as the go-to fallout investment play. Zero Hedge reported that on Friday Google showed something like five times the normal hits on gold as a subject matter.</p> <p>It seems that interest also reverberated into the investment arena.</p> <p>The gold and silver open interests are tallied on a daily basis. A "Preliminary" tabulation of their changes is usually posted late in the evening with a "Final" number posted mid-morning the following business day. At times the two numbers can be noticeably different, but for the most part, they are in decent sync.</p> <p>Well, the "Preliminary" gold open interest just released revealed a mind boggling rise of 59,379 contracts to 628,885. The August contract alone was up 49,124 contracts. Throw out the window any over the top adjective you want to describe that number, and what took place on Friday, and it would not do it justice.</p> <p>A big increase in the gold open interest would be in the 10,000 to 20,000 contract range with a 25,000 increase really registering on the radar screen. For that number to go up nearly 60,000 contracts puts it into seismic earthquake category.</p> <p>Overnight the gold open interest shot up into multi-year high territory by a huge margin, the latest high being around 608,000. Gold’s all-time high number is around 650,000 when prices were FAR higher than they are at the moment.</p> <p>Meanwhile, to add to the drama the silver open interest, after soaring into its own all-time high territory by a SIGNIFICANT amount this week, went surprisingly down 636 contracts to 218,343. My expectation was that it would have gone up sharply once again. Scratching head time on that score. However, it is important to keep in mind the silver open interest was already 10% over its latest all-time high number and 15% over its older all-time high set a few years ago. And that is with silver prices in the DUMPSTER!</p> <p>An explanation perhaps. Thursday is First Notice Day for the July silver contract. The July OI went down 3603 contracts with some spec longs deciding to take some profits ahead of exit time … especially considering the way the silver price was under such obvious JPM/Gold Cartel control on Friday, with the price of gold going bonkers at the same time.</p> <p>The bottom line: the silver open interest is in all-time high territory, and gold is on its way there, with the prices of both precious metals artificially suppressed to very LOW levels. Simplistically, the gold price is less than half of what it would be if it had kept up with inflation in the U.S. and silver is nearly 1/3 of a price it was able to reach 36 years ago.</p> <p>The current gold/silver prices of $1315.60 and $17.72 respectively are only that low because of the relentless efforts of The Gold Cartel forces. That their open interest numbers are skyrocketing with prices so low strongly points out the increasingly desperate situation THEY find themselves in.</p> <p>More simplicity…</p> <p>*The world financial situation is in a precarious state.<br />*Quantitative Easing and low/negative interest rates have been undertaken by the world powers to stimulate world economic sluggishness.<br />*Those efforts have really become stale in the tooth.<br />*Gold is a barometer of U.S., and world, economic health. Down is good, up is bad. Way up is terrible. Thus the gold price is suppressed over and over again thanks to the elitist/establishment world.<br />*Silver is allied with gold. It has been put in the penalty box along with gold because a noticeable price dichotomy between the two would attract too much attention to what and why The Gold Cartel is doing to the price of gold.</p> <p>There have been signs all year that this Gold Cartel is reaching a Tipping Point in which they will be unable to carry on and be effective at the current artificially low gold/silver prices … that they are going to be forced to retreat to MUCH higher price levels to continue their operations … operations which might even not be viable in the years ahead.</p> <p>As you know, the mantra here this year is that gold and silver will never go up again from current price levels until we get a Commercial Signal Failure … which means The Gold Cartel forces short positions are routed by price explosions … with the weakest cabal members, and followers, forced to cover because the financial pain is too great.</p> <p>The incredibly high gold/silver open interest numbers strongly suggest that Commercial Signal Failures are getting closer and closer at hand. As those failures manifest themselves, the prices of both precious metals will soar. For if a number of THEM are buying, who in the heck is going to be selling? It certainly won’t be the specs, who based on all of history, will be adding to their positions, like they are doing now.</p> <p>POINT: the jolting Brexit vote is VERY likely to be the catalyst which finally causes Commercial Signal Failures because of the whopping new interest to buy gold (and silver) all over the world. It is going to be just TOO MUCH for the bums to deal with.</p> <p>So, no matter what sort of counterattack The Gold Cartel feels compelled to launch in the days ahead, it is going to be overrun and fail. As time goes by these last gasp efforts to keep the gold and silver prices artficially submerged will look both pitiful and pathetic.</p> <p>The price of gold is going to soar this year.</p> <p>As for silver, been pounding my thoughts on the table all week. What THEY have done to the silver price is probably unprecedented. As a result, it is a coiled spring that is about to be sprung. Once silver is able to penetrate $18.50 on the upside, it will open Pandora’s Box. The price action at times will be similar to what we saw in gold on Thursday with its $10 higher upticks. Stay tuned!</p> <p>The price action of the gold/silver shares have been screaming all year that mega upside price moves are in the works for the precious metals prices. The correction in the shares have been few and far between. Big Money (perhaps some of the in-the-know bad guy’s own money) keeps piling in. These savvy investors know what is coming down the pike and many certainly have a clear idea that The Gold Cartel’s jig is soon to be up.</p> <p>If there ever was a time to be all over the precious metals sector, this is it!<br />So rule, Britannia -- Britannia, rule thyself</p> <p>&nbsp;&nbsp;&nbsp; </p> <p>Submitted by cpowell on 02:21PM ET Friday, June 24, 2016. Section: Daily Dispatches</p> <p>By Chris Powell<br />Journal Inquirer, Manchester, Connecticut<br />Friday, June 24, 2016</p> <p><a href="" title=""></a> britannia----br...</p> <p>Recognizing that the objective of the European project, ever-closer political and economic union, meant the destruction of democracy, sovereignty, and the country's very culture, Britain has voted in a great referendum to withdraw from the European Union.</p> <p>The majority arose from a remarkable combination of the free-market, limited-government political right, the core of the Conservative Party, with the working-class political left, the core of the Labor Party, both party cores repudiating their leaderships as well as the national elites.<br />The result has enormous implications for the United Kingdom, starting with whether it can remain united, since Scotland - - formerly the most industrious and inventive province in the world, now perhaps the most welfare-addled -- probably will make a second attempt to secede, figuring that free stuff is more likely to flow through continued association with the EU than with England, which is growing resentful of the freeloaders up north.</p> <p>But there are enormous implications for the world as well. The EU project never has won forthright ratification by the people of its member states and indeed has sometimes refused to accept rejection by them. Indeed, the whole EU government is largely unaccountable. So the British vote quickly prompted demands for similar referendums in France and the Netherlands, where conservative populist movements have been gaining strength.</p> <p>The politically correct elites are portraying the British vote as a "xenophobic" response to free movement of labor across the EU and particularly as opposition to the vast recent immigration into Europe from the Middle East and Africa. This immigration is widely misunderstood as being mainly a matter of refugees from civil war. In fact this immigration has been mainly economic and it has driven wages down in less-skilled jobs while increasing welfare costs throughout Europe, which explains the British Laborite support for leaving the EU.</p> <p>But it is not "xenophobic" to oppose the uncontrolled and indeed anarchic immigration the European Union has countenanced. For any nation that cannot control immigration isnt a nation at all or wont be one for long. Since most immigration into Europe lately has come from a medieval and essentially fascist culture and involves people who have little interest in assimilating into a democratic and secular society, this immigration has threatened to destroy Europe as it has understood itself. Britain has been lucky to be at the far end of this immigration, but voters there saw the mess it has been making on the other side of the Channel. They wisely opted to reassert control of their borders.</p> <p>Their example should be appreciated in the United States, which for decades has failed to enforce its own immigration law and as a result hosts more than 10 million people living in the country illegally and unscreened. Fortunately few of this country's illegal immigrants come from a culture that believes in murdering homosexuals, oppressing women, and monopolizing religion. But the negative economic and social effects here are similar to those in Europe and properly have become political issues.</p> <p>The main lesson of Britain's decision may be an old one - - that nations have to develop organically, arising from the consent of the governed and a common culture, and that they can't be manufactured by elites. Having defended its sovereignty and indeed liberty itself against Napoleon and Hitler, Britain now has set out to defend them again. So rule, Britannia -- Britannia, rule thyself.</p> <p>The nations not so blest as thee<br />Must in their turn to tyrants fall,<br />While thou shalt flourish great and free,<br />The dread and envy of them all.</p> <p>-----</p> <p>Chris Powell is managing editor of the Journal Inquirer.</p> <p>GATA BE IN IT TO WIN IT!<br />MIDAS</p> Chris Powell European Union Fail France Google John Embry Middle East Napoleon Netherlands Precious Metals Price Action Quantitative Easing United Kingdom Sat, 25 Jun 2016 17:34:49 +0000 lemetropole 564551 at 4 Reasons the Twin Towers Could NOT Have Been Brought Down With Explosives On 9/11 <p><em>Preface: We've <a href="">previously shown</a> that 9/11 <strong>couldn't</strong> have been an inside job, because:</em></p> <ul> <li><em>9/11 was thoroughly and exhaustively investigated by the 9/11 Commission, Congress and U.S. scientific agencies<br /> </em></li> </ul> <ul> <li><em>No one could have foreseen 9/11</em></li> </ul> <ul> <li><em>Government officials didn't have time to stop the 9/11 attacks, once they realized America was under attack</em></li> </ul> <ul> <li><em>It couldn't have been a conspiracy, because no one could keep such a big conspiracy secret ... someone would have talked<br /> </em></li> </ul> <ul> <li><em>Our government wouldn't do anything like that, and<br /> </em></li> </ul> <ul> <li><em>Our free press would have reported on anything that outrageous</em></li> </ul> <p> <em><a href="">See for yourself</a>.</em></p> <p><em>But many people <strong>still </strong>believe that the World Trade Center buildings which collapsed on 9/11 were brought down with controlled demolition. This essay shows they can't possibly be right.</em></p> <h3 style="color: #000099;">I. No One Could Have Planted Bombs In a Crowded Office Building</h3> <p> Conspiracy theorists don't realize that no one could have planted bombs in a crowded office building like the Twin Towers.</p> <p>Admittedly, tightrope walker Philippe Petit snuck into the World Trade Center with a friend in 1974 with <a href="">massive amounts of equipment</a>, smuggled the equipment to the top floor and rigged up a highwire for his tightrope walking stunt without being detected.</p> <p>And it's true that in 1978, the 59-story story Citicorp building was <a href="">secretly</a> retrofitted <a href="">at night</a> over the course of several months without the knowledge of tenants, the general public, or the media:</p> <p> <iframe src="" width="780" height="585.493670886" frameborder="0"></iframe></p> <p>And in 2009, Raw Story <a href="">noted</a>: </p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>A Government Accountability Office investigator smuggled live bomb components into a federal building in just 27 seconds, then assembled a bomb in a restroom and ventured throughout the building without being detected, a leaked tape revealed Wednesday.</p> <p>In addition, congressional investigators were able to penetrate every single federal building they probed without any difficulty — 10 in all.</p></blockquote> <p> And see <a href="">this</a>.</p> <p>And we concede that: </p> <ul> <li>Bomb-sniffing dogs were inexplicably removed from the Twin Towers <a href=",0,3192994.story"><em>five days before</em> 9-11</a></li> </ul> <ul> <li>The Twin Towers had been evacuated <a href=",11859,174592-5,00.html">a <em>number of times</em> in the weeks preceding 9/11</a></li> </ul> <ul> <li>There was a <a href="">power down in the Twin Towers on the weekend before 9/11, security cameras were shut down, and many workers ran around busily doing things unobserved</a> (confirmed <a href=";feature=player_embedded">here</a>)</li> </ul> <ul> <li>A tenant of the World Trade Center hired a "sprinkler repairman" shortly before 9/11, and gave him access to <a href=",1426,MCA_437_989113,00.html">6 underground levels</a> at World Trade Center building 1</li> </ul> <ul> <li>And -- while it doesn't mat -- <a href="">a Bush-linked company ran security at the trade centers</a>, thus giving it free reign to the buildings</li> </ul> <p> The <em><strong>chief</strong> electrical engineer</em> who wired the World Trade Centers (Richard Humenn) says that people working on the elevators could have planted explosives:</p> <p><iframe src=";showinfo=0" width="780" height="438.379746836" frameborder="0"></iframe></p> <p>And mechanical engineer Gordon Ross, in his talk on the destruction of the Twin Towers, <a href="">pointed out</a> that: </p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>“Those [core] columns which were situated adjacent to and accessible from inside the elevator shafts failed at an early stage of the collapse.</p> <p>Those columns which were remote from the elevator shafts, and not accessible from the elevator shafts, survived the early stages of the collapse."*</p></blockquote> <p> Indeed, a top demolition expert says that with access to the elevator shaft, a team of loading experts would have access to the columns and beams:</p> <p><iframe src="" width="780" height="585" frameborder="0"></iframe></p> <p>According to USA Today: "<a href="">On Sept. 11, ACE Elevator of Palisades Park, N.J., had <span style="font-style: italic;">80 </span>elevator mechanics inside the World Trade Center</a>".</p> <p>And the U.S. government agency (the National Institute of Standards and Technology) itself says that, on 9/11, "<a href="">Elevators 6A and 7A were out of service for modernization</a>". (NIST NCSTAR 1-8, p.97).</p> <p>In addition, Ace <a href="">worked in and around</a> structural steel at the Twin Towers: </p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>A run of approximately 80 vertical feet, employed over 300 running feet of 2-1/2" x 8" and 2"x 2" trough raceway. This run traveled through plaster ceilings, concrete floors and <span style="font-style: italic;">around structural steel</span>.</p></blockquote> <p> Indeed, there had been numerous elevator renovation and and asbestos removal projects in the 6 years prior to 9/11 which allowed access to core building structures, including: </p> <ul> <li><a href="">1995</a></li> </ul> <ul> <li><a href="">1997</a></li> </ul> <ul> <li><a href="">1998</a></li> </ul> <ul> <li><a href="">1998</a></li> </ul> <ul> <li><a href="">2000</a></li> </ul> <p> But so what? </p> <h3 style="color: #000099;">II. No One <em>Heard</em> Explosions</h3> <p> Conspiracy theorists also ignore the fact that there were no sounds of explosions on 9/11.</p> <p>Well, <a href="">there were <em>some</em></a>:</p> <p><iframe src="" width="780" height="585" frameborder="0"></iframe><br /> <iframe src="" width="780" height="439" frameborder="0"></iframe><br /> <iframe src=";end=264" width="780" height="585" frameborder="0"></iframe></p> <p>There are literally hundreds of other witnesses who heard explosions.</p> <p>Indeed, witnesses heard explosions even <em>before</em> the planes hit ...</p> <p>A <a href="">hero who saved many people</a> on 9/11, and who was the last person out of the north tower, said that there was a massive explosion from the basement in the North Tower <a href="">BEFORE the plane hit</a>:</p> <p><iframe src=";showinfo=0" width="780" height="585" frameborder="0"></iframe></p> <p>And other witnesses say something similar:</p> <p><iframe src=";end=505" width="780" height="585" frameborder="0"></iframe></p> <p><iframe src=";end=23" width="780" height="585" frameborder="0"></iframe></p> <p>But those videos and witnesses don't count.</p> <h3 style="color: #000099;">III. The Talk of Mysterious "Molten Metal" Is Wrong</h3> <p> The spokesman for the government agency which says that the building collapsed due to fire (the National Institute of Standards and Technology) said there was <em>no molten metal</em> at ground zero:</p> <p><iframe src="" width="600" height="437" frameborder="0"></iframe></p> <p>So that puts that crazy conspiracy theory to rest once and for all. Sure, there were a few contrary reports: </p> <ul> <li>The structural engineer responsible for the design of the WTC, described <a href="" target="_blank" title="fires still burning and molten steel still running 21 days after the attacks">fires still burning and molten steel still running 21 days after the attacks</a> (page 3)</li> </ul> <ul> <li>A structural engineer who worked for the Trade Center’s original designer saw<a href=";v=glance&amp;n=283155" target="_blank" title=" “streams of molten metal that leaked from the hot cores and flowed down broken walls inside the foundation hole.”"> “streams of molten metal that leaked from the hot cores and flowed down broken walls inside the foundation hole.”</a> (pages 31-32)</li> </ul> <ul> <li>An engineer stated in the September 3, 2002 issue of The Structural Engineer, <a href="" target="_blank" title="“They showed us many fascinating slides ranging from molten metal, which was still red hot weeks after the event.”">“They showed us many fascinating slides ranging from molten metal, which was still red hot weeks after the event.”</a></li> </ul> <div id="previewbody"> <ul> <li>New York firefighters recalled in a documentary film, <a href="" target="_blank" title="“heat so intense they encountered rivers of molten steel.” ">“heat so intense they encountered rivers of molten steel.” </a></li> </ul> <ul> <li>A NY firefighter described <a href=";sourceid=docidfeed&amp;hl=en" target="_blank" title="molten steel flowing at ground zero, and said it was like a “foundry” or like “lava”.">molten steel flowing at ground zero, and said it was like a “foundry” or like “lava”.</a></li> </ul> <ul> <li>A public health advisor who arrived at Ground Zero on September 12, said that <a href="" target="_blank" title=" “feeling the heat” and “seeing the molten steel” there reminded him of a volcano."> “feeling the heat” and “seeing the molten steel” there reminded him of a volcano.</a></li> </ul> <ul> <li>An employee of New Jersey’s Task Force One Urban Search and Rescue witnessed <a href="" target="_blank" title="“Fires burn[ing and molten steel flow[ing] in the pile of ruins still settling beneath her feet.”">“Fires burn[ing and molten steel flow[ing] in the pile of ruins still settling beneath her feet.”</a></li> </ul> <ul> <li>The head of a team of scientists studying the potential health effects of 9/11, reported, <a href="" target="_blank" title="“Fires are still actively burning and the smoke is very intense. In some pockets now being uncovered, they are finding molten steel.”">“Fires are still actively burning and the smoke is very intense. In some pockets now being uncovered, they are finding molten steel.”</a></li> </ul> <ul> <li>According to a worker involved with the organizing of demolition, excavation and debris removal operations at ground zero, <a href="" target="_blank" title="“Underground it was still so hot that molten metal dripped down the sides of the wall from Building 6.”">“Underground it was still so hot that molten metal dripped down the sides of the wall from Building 6.”</a></li> </ul> <ul> <li>A reporter with rare access to the debris at ground zero <a href="" target="_blank" title="“descended deep below street level to areas where underground fires still burned and steel flowed in molten streams.“">“descended deep below street level to areas where underground fires still burned and steel flowed in <em>molten streams.</em>“</a></li> </ul> <ul> <li>A witness said <a href="" target="_blank" title="“In the first few weeks, sometimes when a worker would pull a steel beam from the wreckage, the end of the beam would be dripping molten steel” ">“In the first few weeks, sometimes when a worker would pull a steel beam from the wreckage, the end of the beam would be dripping molten steel” </a></li> </ul> <ul> <li>According to a member of New York Air National Guard’s 109th Air Wing, who was at Ground Zero from September 22 to October 6, <a href="" target="_blank" title="“One fireman told us that there was still molten steel at the heart of the towers’ remains. Firemen sprayed water to cool the debris down but the heat remained intense enough at the surface to melt their boots.”">“One fireman told us that there was still molten steel at the heart of the towers’ remains. Firemen sprayed water to cool the debris down but the heat remained intense enough at the surface to melt their boots.”</a></li> </ul> <ul> <li>A retired professor of physics and atmospheric science said <a href="" target="_blank" title="“in mid-October when they would pull out a steel beam, the lower part would be glowing dull red, which indicates a temperature on the order of 500 to 600 °C. And we know that people were turning over pieces of concrete in December that would flash into fire–which requires about 300 °C. So the surface of the pile cooled rather rapidly, but the bulk of the pile stayed hot all the way to December.”">“in mid-October when they would pull out a steel beam, the lower part would be glowing dull red, which indicates a temperature on the order of 500 to 600 °C. And we know that people were turning over pieces of concrete in December that would flash into fire–which requires about 300 °C. So the surface of the pile cooled rather rapidly, but the bulk of the pile stayed hot all the way to December.”</a></li> </ul> <ul> <li>A fireman stated that <a href="" target="_blank" title="there were “oven” like conditions at the trade centers six weeks after 9/11">there were “oven” like conditions at the trade centers six weeks after 9/11</a>.</li> </ul> <ul> <li>Firemen and hazardous materials experts also stated that, six weeks after 9/11, <a href="" target="_blank" title="“There are pieces of steel being pulled out [from as far as six stories underground] that are still cherry red” and “the blaze is so ‘far beyond a normal fire’ that it is nearly impossible to draw conclusions about it based on other fires.”">“There are pieces of steel being pulled out [from as far as six stories underground] that are still cherry red” and “the blaze is so ‘far beyond a normal fire’ that it is nearly impossible to draw conclusions about it based on other fires.”</a> (pay-per-view)</li> </ul> <ul> <li>A NY Department of Sanitation spokeswoman said <a href="" target="_blank" title="“for about two and a half months after the attacks, in addition to its regular duties, NYDS played a major role in debris removal – everything from molten steel beams to human remains….”">“for about two and a half months after the attacks, in addition to its regular duties, NYDS played a major role in debris removal – everything from molten steel beams to human remains….”</a></li> </ul> <ul> <li>New York mayor Rudy Giuliani said <a href="" target="_blank" title="“They were standing on top of a cauldron. They were standing on top of fires 2,000 degrees that raged for a hundred days.”">“They were standing on top of a cauldron. They were standing on top of fires 2,000 degrees that raged for a hundred days.”</a></li> </ul> <ul> <li>As late as five months after the attacks, in February 2002, firefighter Joe O’Toole saw <a href="" target="_blank" title="a steel beam being lifted from deep underground at Ground Zero, which, he says, “was dripping from the molten steel.”">a steel beam being lifted from deep underground at Ground Zero, which, he says, “was dripping from the molten steel.”</a></li> </ul> <ul> <li>A rescue worker “crawled through an opening and down crumpled stairwells to the subway<a href="" target="_blank" title=" five levels below ground. He remembers seeing in the darkness a distant, pinkish glow–molten metal dripping from a beam"> five levels below ground. He remembers seeing in the darkness a distant, pinkish glow–molten metal dripping from a beam</a>“</li> </ul> <ul> <li>And see witness statements at the beginning of <a href="" target="_blank" title="this video">this video</a></li> </ul> <ul> <li>Indeed, not only was structural steel somehow melted on 9/11, but it was <em>evaporated</em>. As the New York Times <a href="" target="_blank" title="reports">reports</a>, an expert stated about World Trade Center building 7:<br /> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>A combination of an uncontrolled fire and the structural damage might have been able to bring the building down, some engineers said. But <strong>that would not explain steel members</strong> in the debris pile that appear to have been <strong>partly evaporated</strong> in extraordinarily high temperatures.</p></blockquote> <p>(pay-per-view). Evaporation means <a href=";r=67" target="_blank" title="conversion from a liquid to a gas">conversion from a liquid to a <em>gas</em></a>; so the steel beams in World Trade Center building 7 were subjected to temperatures high enough to melt <em>and</em> evaporate them</p></li> </ul> </div> <p> Well, stuff happens. Not worth getting distracted from reading about the Kardashians and Caitlyn Jenner. </p> <h3 style="color: #000099;">IV. The Collapse of Three Buildings On 9/11 Wasn't Suspicious</h3> <p> If the World Trade Center buildings had been brought down by demolition, they would have fallen in an unusual manner.</p> <p>But that didn't happen for very long:</p> <p><iframe src=";showinfo=0" width="780" height="439" frameborder="0"></iframe><br /> <iframe src=";showinfo=0" width="780" height="439" frameborder="0"></iframe></p> <p>And the <a href="">60+ structural engineers</a> who say that the World Trade Center buildings were brought down with controlled demolition are obviously closet commies.</p> <p>Indeed, I dare you to watch this 1-hour video and find a single expert who appears like a normal, credible person (they undoubtedly all live in their Mom's basement):</p> <p><iframe src=";showinfo=0" width="780" height="439" frameborder="0"></iframe></p> <p>So there you have it ... 9/11 was not a <a href="">false flag attack</a>, and the 3 World Trade Center buildings which collapsed on 9/11 could <em>not </em>have been due to controlled demolition.</p> New York Times World Trade Sat, 25 Jun 2016 17:02:31 +0000 George Washington 564550 at Turkey Gloats: "The Crusader Union Falls Apart" <p>Earlier today, we showed the front pages of British newspapers on the first day after the historic Brexit referendum. Just as amusing front pages, howeve,&nbsp; abound in Turkey and especially among the pro-government (and thus government-controlled) press, such as the Akit newspaper, which looks at the chaos in the UK and says "the Crusader Union falls apart" (<em>somewhat ironic for the former Ottoman Empire)</em>.</p> <p>As a reminder, many have noted that the Brexit referendum was not about economic issues as much as about immigration, and not one country received more attention than Turkey, whose EU-membership may have been the key variable that sealed the outcome of the referendum vote. Recall that while David Cameron was assuring voters that "Turkey would not join the EU until the year 3,000", it turned out to be a lie when it was revealed that <a href="">Europe was actually holding Turkish accession </a>talks as soon on June 30.</p> <p>For now Turkey may have won the battle... </p> <blockquote class="twitter-tweet"><p dir="ltr" lang="en">Headline in <a href="">#Turkey</a> pro-gov't daily on <a href="">#Brexit</a>: "Crusader union falls apart." <a href=""></a></p> <p>— IrmakYenisehirlioglu (@Irmak_Ye) <a href="">June 25, 2016</a></p></blockquote> <script src="//"></script><p>... But it has almost certainly lost the war, as every other Europen nation will now be terrified of a similar popular uprising and referendum outcome should other countries support Turkey's EU membership. </p> <p>Which, of course, is the worst possible news for Angela Merkel, because if and when Erdogan realizes that his latest hope to become part of Europe has again been dashed, he will have no problem with unleashing the millions of Syrian refugees currently held back by Turkish borders, and send them right inside Germany, leading to Europe's next migrant crisis - likely in the last months of 2016 - which in turn will lead to the full suspension Europe's customs union, and yet another nail in the coffin of the European "union."</p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="904" height="707" alt="" src="" /> </div> </div> </div> European Union Germany Newspaper Turkey Twitter Twitter Sat, 25 Jun 2016 16:30:04 +0000 Tyler Durden 564549 at Germany Says "We Won't Let Anyone Take Europe From Us" <p>Yesterday we said that in the historic fallout and unprecedented confusion over Brexit, so far only one sure winner has emerged - namely Russia, where Vladimir Putin is watching the slow-motion collapse of this latest artifical aggregation of Europen states (a quick search of failed attempts at European integration results in tens of pages of results) with great interest and willingness to pounce at any opportunity - even as all of Europe is a loser, and nobody more so than Germany, whose chancellor Merkel is now watching her legacy go down in flames as first the UK, then France (National Front), Italy (Five Star Movement), Denmark (Danish People’s Party), and Holland (Freedom Party) have all called for either a EU referendum of their own or a renegotiation of their country’s EU membership.</p> <p>As would be expected, the more worried and desperate Germany gets, the more ridiculous things Germany is apt to say. Case in point is what German Foreign Minister Frank-Walter Steinmeier said earlier today, when he tried to reassure onlookers that the EU would weather the shock of the British vote to leave the union as he convened crisis talks. </p> <p>Well, one small nuance: Steinmeier wasn't focusing on the EU, he was far more concerned about Germany and how the one nation that has benefited more than anyone one else from the customers union and the common currency is struggling to keep up appearance that asll is well.</p> <p>As Steinmeier was heading into a Berlin meeting with his counterparts from the EU's six founding members, he said the following: "<strong>I am confident that these countries can also send a message that we won't let anyone take Europe from us."</strong></p> <p><em><strong>Or else? </strong></em>Because while "us" was meant to refer to the EU, he really meant Germany.</p> <p>Steinmeier called the European Union "a successful project of peace and stability" and said that there was a "strong desire" within the bloc to defend and strengthen it. It would appear that tens if not hundreds of millions no longer agree.&nbsp; </p> <p>The damage control continued when he said that "it is absolutely clear that we are in a situation in which neither hysteria nor paralysis are permissible." Indeed: which is why central banks, the G7 and the IMF all scrambled to prop up... the world's markets. </p> <p>"We must not rush headlong into hectic action, pretending we had all the answers. But we must also not fall into depression or inaction after the British decision."</p> <p>But didn't you have all the answers when you said that a vote for Brexit would assure financial armageddon? Odd how that changed so fast.</p> <p>As <a href="">AFP reported earlier</a>, Steinmeier's French counterpart Jean-Marc Ayrault urged quick negotiations on Britain's exit from the union, saying that the pressure would be "very strong" on British Prime Minister David Cameron at an EU summit on Tuesday to speed up the process. </p> <p>Cameron, who on Friday announced his resignation by October in the wake of the referendum, said it should be his successor who leads the complex negotiations under Article 50 of the EU's Lisbon Treaty which sets out a two-year timeframe to leave.</p> <p>Steinmeier hosted Ayrault, the Netherlands' Bert Koenders, Italy's Paolo Gentiloni, Belgium's Didier Reynders and Luxemburg's Jean Asselborn in a lakeside villa north of the city centre. </p> <p>Ayrault said he and Steinmeier, whose countries long represented the twin-engine of European integration, were working on joint proposals that could deepen cooperation among EU members that use the euro currency, or bolster security and defence coordination. Steinmeier said the ministers would discuss joint action on the refugee influx, the unemployment crisis and security during their meeting scheduled to wrap up around 1000 GMT with a news conference.</p> <p>* * * </p> <p>Meanwhile, as Steinmeier scrambles to reassure naive onlookers how "peaceful and stable" the European project remains, what he is most worried about is not just another EU member nation quitting, but specifically a nation that is a member of the Eurozone, and shares the Euro. If that happens, it's all over.</p> <p>As Barclays wrote overnight, the biggest potential worry is that another country, especially one that is also part of the EMU, might set out on a political path towards exiting the EU and EMU. <strong>While a country leaving the EU is a big event, <span style="text-decoration: underline;">one potentially leaving the EMU would be a much bigger deal</span>. </strong>If markets start attaching a greater probability to an EU referendum (and a possible exit) in an EMU country, <strong>it could spark a return of redenomination risk and financial fragmentation, undermining business confidence and hampering business investment and growth.</strong></p> <p>A series of recent surveys and statements by some European parties suggest that this risk is real. Anxiety over immigration and a weak economic recovery have greatly eroded pro-EU sentiment in the euro area. <strong>A recent Pew survey found that roughly half or more of the population in large EU countries such as France, Spain and Germany viewed the EU unfavorably. </strong>The same survey showed that overwhelming majorities in most countries disapproved of the EU’s handling of refugees, as well as the economy. <strong>In a similar poll released by Ipsos Mori in May, nearly half of euro area citizens wanted a referendum on EU membership in their own country, including majorities in France and Italy </strong>(Figure 2). And in recent days, leading political parties in countries such as France (National Front), Italy (Five Star Movement), Denmark (Danish People’s Party), and Holland (Freedom Party) have all called for either a EU referendum of their own or a renegotiation of their country’s EU membership. These calls have become louder in countries such as Holland after the UK vote.</p> <p><a href=""><img src="" width="600" height="444" /></a></p> <p>And as the following chart shows, the pain for Europe is just starting:</p> <p><a href=""><img src="" width="600" height="380" /></a></p> <p>&nbsp;</p> <p>It appears that the trade now is not to sell Sterling, at least not anymore: one should have done that at 1.50 when everyone was wrong about the Brexit outcome based on manipulated polls as we explained <a href="">ahead of the event</a>. If anything, sterling will rebound following the positive boost to the UK economy following the devaluation. It's the long EUR trade we would be far more concerned about here... </p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="650" height="400" alt="" src="" /> </div> </div> </div> Barclays Central Banks European Union Eurozone France Germany Italy recovery Unemployment Vladimir Putin Sat, 25 Jun 2016 15:30:12 +0000 Tyler Durden 564548 at Hedge Funds which are really Money Managers have become Dumb Money (Video) <p>By <a href=""><span style="color: #f24024;">EconMatters</span></a> </p> <p><em><br /></em> </p> <div class="separator" style="clear: both; text-align: center;"><a href="" style="margin-left: 1em; margin-right: 1em;"><img src="" width="400" height="311" border="0" /></a></div> <p> So called "Hedge Funds" who employ no real hedge fund strategies for the majority of their allotted fund capital are really just marketing themselves as Alpha Players to charge the 2 and 20, when based upon performance and trading strategies deserve just the 1.5 to 2% money managing fee of standard money managers.</p> <p></p> <div class="separator" style="clear: both; text-align: center;"><iframe src="" width="320" height="266" frameborder="0"></iframe></div> <p> © <a href="" target="_blank"><span style="color: #f24024;">EconMatters</span></a> All Rights Reserved | <a href="" target="_blank"><span style="color: #f24024;">Facebook</span></a> | <a href="!/EconMatters" target="_blank"><span style="color: #f24024;">Twitter</span></a> | <a href="" target="_blank"><span style="color: #f24024;">YouTube</span></a> | <a href="" target="_blank"><span style="color: #f24024;">Email Digest</span></a> | <a href=";node=80"><span style="color: #f24024;">Kindle</span></a><strong>&nbsp;</strong><em>&nbsp;</em><span style="text-decoration: underline;">&nbsp;</span></p> Dumb Money Trading Strategies Twitter Twitter Sat, 25 Jun 2016 14:50:35 +0000 EconMatters 564547 at "See EU Later" - On The Front Covers Of UK Newspapers Today <p>Two days ago, when Britain was set to vote for Brexit, we showed the front pages of the local newspapers which fell into two broad camps and could be summarized as follows: "Project Hope" and "Project Fear." Project Hope won. And just as we did then, here is a snapshot of the newspaper and tabloid covers the local population will see on its European Independence day.</p> <p>Neddless to say, the split in public opinion persists and can be best seen in the covers of the ideologically opposed Daily Express and The Mirror.</p> <p><a href=""><img src="" width="600" height="781" /></a></p> <p><a href=""><img src="" width="600" height="754" /></a></p> <p>&nbsp;</p> <p><em><strong>And the rest</strong></em></p> <p><a href=""><img src="" width="600" height="759" /></a></p> <p><a href=""><img src="" width="600" height="881" /></a></p> <p><a href=""><img src="" width="600" height="949" /></a></p> <p><a href=""><img src="" width="600" height="1028" /></a></p> <p><a href=""><img src="" width="600" height="742" /></a></p> <p><a href=""><img src="" width="600" height="970" /></a></p> <p><a href=""><img src="" width="600" height="786" /></a></p> <p><a href=""><img src="" width="600" height="802" /></a></p> <p><a href=""><img src="" width="600" height="768" /></a></p> <p><a href=""><img src="" width="600" height="806" /></a></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="2206" height="300" alt="" src="" /> </div> </div> </div> Newspaper Sat, 25 Jun 2016 14:13:35 +0000 Tyler Durden 564546 at W-I-L-D! <p style="font-size: 13.008px; line-height: 20.0063px;"><em style="line-height: 20.8px;"><span style="color: #800000;">By Chris at&nbsp;<a href=""></a></span></em></p> <p style="font-size: 13.008px; line-height: 20.0063px;">That's the only way to describe it.</p> <p style="font-size: 13.008px; line-height: 20.0063px;">If today's missive is a little shaky or disjointed, it's because I've been running on adrenalin for 15 hours flat, and I'm feeling a little exhausted.</p> <p style="font-size: 13.008px; line-height: 20.0063px;">We are in the midst&nbsp;of a period of financial history that will go down in the history books.</p> <p style="font-size: 13.008px; line-height: 20.0063px;">I've spent the last 15+ hours&nbsp;trading and messaging with a&nbsp;<a href="" target="_blank">good friend</a>&nbsp;who's one of the best traders I know. I'm now taking a break to pen this before getting back to European open. I don't expect to sleep much tonight.</p> <p style="font-size: 13.008px; line-height: 20.0063px;">Traders love volatility and&nbsp;what the markets delivered today has&nbsp;been nothing short of freaking AWESOME.</p> <p style="font-size: 13.008px; line-height: 20.0063px;">The volatility has been absolutely stunning and the trading opportunities have been&nbsp;popping up like moles in a super charged game of&nbsp;whacka-mole. Except that the moles can bite your head off if you're not to careful.</p> <p style="font-size: 13.008px; line-height: 20.0063px;">As a&nbsp;teenager only just getting interested in financial markets, I'd dreamt of events such as this.</p> <p style="font-size: 13.008px; line-height: 20.0063px;">It's somewhat surreal as we&nbsp;read the stories, search through the&nbsp;history, analyse the charts, the numbers, the ratios, and myriad other pieces of the puzzle; and so to be applying skills as this unfolds in real time is truly mind blowing.</p> <p style="font-size: 13.008px; line-height: 20.0063px;">But first let me give you a taste of the "fun" experienced:</p> <ul style="font-size: 13.008px; line-height: 20.0063px;"> <li>The GBP/USD saw 20 point moves throughout the day and as the news broke the pound sterling became the sterling pounded. It&nbsp;has now fallen below its 30-year trend line at 1.37. Take a look at this chart and tell me the efficient market hypothesis works.</li> </ul> <p style="font-size: 13.008px; line-height: 20.0063px;"><img src="" alt="stl" width="550" height="238" style="display: block; margin-left: auto; margin-right: auto;" class="wp-image-15538 aligncenter" /></p> <ul style="font-size: 13.008px; line-height: 20.0063px;"> <li>Then gold bolted $70 in the space of 3 hours:</li> </ul> <p style="font-size: 13.008px; line-height: 20.0063px;"><img src="" alt="gold" width="550" height="238" style="display: block; margin-left: auto; margin-right: auto;" class="wp-image-15539 aligncenter" /></p> <ul style="font-size: 13.008px; line-height: 20.0063px;"> <li>Bitcoin lost roughly $200 over the last few days&nbsp;and then rallied $100 within the&nbsp;day</li> <li>The Japanese yen rallied and most stunningly the 30 year JGB printed at 0.145%</li> <li>S&amp;P futures are halted for trading limit down.</li> </ul> <p style="font-size: 13.008px; line-height: 20.0063px;">As the day progressed, in between watching positions I snapped some of the flow on Twitter.</p> <p style="font-size: 13.008px; line-height: 20.0063px;"><img src="" alt="Screen Shot 2016-06-24 at 4.06.21 PM" width="500" height="133" style="display: block; margin-left: auto; margin-right: auto;" class="wp-image-15536 aligncenter" /></p> <p style="font-size: 13.008px; line-height: 20.0063px;">The most seasoned of traders were in shock and awe. Even George W. couldn't produce this much shock and awe.</p> <p style="font-size: 13.008px; line-height: 20.0063px;"><img src="" alt="Screen Shot 2016-06-24 at 4.41.40 PM" width="500" height="63" style="display: block; margin-left: auto; margin-right: auto;" class="aligncenter wp-image-15537" /></p> <p style="font-size: 13.008px; line-height: 20.0063px;">Certainly no run of the mill day...</p> <p style="font-size: 13.008px; line-height: 20.0063px;"><img src="" alt="Screen Shot 2016-06-24 at 5.11.27 PM" width="500" height="521" style="display: block; margin-left: auto; margin-right: auto;" class="wp-image-15540 aligncenter" /></p> <p style="font-size: 13.008px; line-height: 20.0063px;">And as I write this, Asia is closing while Europe opens. It's going to be a long night.</p> <p style="font-size: 13.008px; line-height: 20.0063px;"><img src="" alt="Screen Shot 2016-06-24 at 8.20.22 PM" width="500" height="461" style="display: block; margin-left: auto; margin-right: auto;" class="wp-image-15541 aligncenter" /></p> <p style="font-size: 13.008px; line-height: 20.0063px;">Recently&nbsp;<a href="" target="_blank">I gave up something</a>&nbsp;which had been very special to me. It was my baby for a long time and today I know with certainty that it was the right decision.</p> <p style="font-size: 13.008px; line-height: 20.0063px;">The macro landscape is shifting underneath as at warp speed, and in today's world capital shifts in minutes. With the Blockchain it shifts in seconds.</p> <p style="font-size: 13.008px; line-height: 20.0063px;">The politicians and central bankers are increasingly behind the curve, scrambling to catch up and each and every turn sees them exacerbating and compounding problems.</p> <p style="font-size: 13.008px; line-height: 20.0063px;">Brexit should stand as a wake up call not only to central bankers but to the political class globally.</p> <p style="font-size: 13.008px; line-height: 20.0063px;">As I mentioned in this week's&nbsp;<a href="" target="_blank">"World Out of Whack":</a></p> <blockquote style="font-size: 13.008px; line-height: 20.0063px;"><p>The vote to stay or leave the EU is as much a vote for or a rejection of the establishment than any other European or British referendum&nbsp;I can think of.</p></blockquote> <h3 style="line-height: 20.0063px;"><strong>What Now?</strong></h3> <p style="font-size: 13.008px; line-height: 20.0063px;">You know when you tell your wife that you forgot to put dinner on because you were too busy doing something else and she completely loses the plot?</p> <p style="font-size: 13.008px; line-height: 20.0063px;">W<span style="font-size: 13.008px; line-height: 1.538em;">ell, from my experience - and I'm quite experienced - it often has more to do with the fact that I've annoyed her with something else as well, and it's not actually got all that much to do with dinner.</span></p> <p style="font-size: 13.008px; line-height: 20.0063px;"><span style="font-size: 13.008px; line-height: 1.538em;">Sometimes it's the&nbsp;market reaction to an event rather than the event itself which matters more. This is what we're seeing now.</span></p> <p style="font-size: 13.008px; line-height: 20.0063px;"><span style="font-size: 13.008px; line-height: 1.538em;"><strong>This isn't about Britain as much as it is about a global anti establishment uprising.</strong>&nbsp;The British people opting out of the EU is a profound&nbsp;statement to that effect.</span></p> <p style="font-size: 13.008px; line-height: 20.0063px;"><span style="font-size: 13.008px; line-height: 1.538em;">I think it's fair to say that the extent to which the markets have been reacting indicates just how incredibly fragile they really are.</span></p> <p style="font-size: 13.008px; line-height: 20.0063px;"><span style="font-size: 13.008px; line-height: 1.538em;">As I mentioned on Wednesday:</span></p> <blockquote style="font-size: 13.008px; line-height: 20.0063px;"><p>As traders and investors it’s of no consequence what we may wish to happen. As incredibly important, wonderful, talented,&nbsp;intelligent, good looking, and well deserving readers of&nbsp;<a href="" target="_blank">Capitalist Exploits</a>&nbsp;are, the market doesn’t actually give a toss&nbsp;about us. Depressing, I know. But what actually takes place and how that affects asset prices is what matters.</p></blockquote> <p style="font-size: 13.008px; line-height: 20.0063px;">Over the coming months and years ahead, this is bearish for the euro far more than it is bearish for the pound. This is a vote of no-confidence in Europe and a vote of no confidence in the euro. I really can't find any reason to be long the euro at all.&nbsp;<strong>All the duct tape in the world isn't going to hold the EU or the euro together.</strong></p> <p style="font-size: 13.008px; line-height: 20.0063px;">The illiquidity that will now wash over other asset classes promises to be extreme.</p> <p style="font-size: 13.008px; line-height: 20.0063px;">Some questions that I think are worth asking yourself:</p> <ol style="font-size: 13.008px; line-height: 20.0063px;"> <li>Is&nbsp;this the&nbsp;sudden and immediate drying up of&nbsp;the huge amounts of capital that have been pouring into Silicon Valley and VC in general which I've been so&nbsp;<a href="" target="_blank">concerned about?</a>&nbsp;Nobody is going to want to be illiquid.</li> <li>Do you want to be in small cap stocks which can suffer illiquidity gaps or do you want to be in large cap stocks?</li> <li>How do you weight protection and liquidity in your portfolio?</li> <li>Are you going to want exposure to emerging markets in a global risk off environment?</li> <li>What do you need to do to prosper in this environment?</li> </ol> <p style="font-size: 13.008px; line-height: 20.0063px;">Capital is shifting right now at lighting speed and fortunes are&nbsp;being made and lost. Today was an awesome day for my buddy and I but I'm always aware to manage risks.</p> <p style="font-size: 13.008px; line-height: 20.0063px;">I<span style="font-size: 13.008px; line-height: 1.538em;">f markets continue in a fashion that is even a fraction of that which I'm watching on my screens now, then it's a foregone conclusion to me that we'll get a stimulus package to meet all stimulus packages. They'll probably even call it something unique by picking letters out of a Scrabble bag but it's coming regardless.</span></p> <p style="font-size: 13.008px; line-height: 20.0063px;"><span style="font-size: 13.008px; line-height: 1.538em;">This will set up some fantastic trading opportunities and may well be the last "hurrah" that pushes the debt burden of sovereigns to breaking point.</span></p> <p style="font-size: 13.008px; line-height: 20.0063px;"><span style="font-size: 13.008px; line-height: 1.538em;">Books will be written about this period of time. Count yourself lucky to be alive witnessing it in real time.</span></p> <p style="font-size: 13.008px; line-height: 20.0063px;">- Chris</p> <p style="text-align: center;">============</p> <p style="text-align: center;">Liked this article?&nbsp;<a href="">Don't miss our future articles and podcasts, and</a></p> <p style="text-align: center;"><a href="">get access</a>&nbsp;<a href="" style="line-height: 20.8px; font-size: 1em;">to free subscriber-only content here.</a></p> <p style="text-align: center;">============</p> Bitcoin Duct Tape Sovereigns Twitter Twitter Volatility Yen Sat, 25 Jun 2016 13:53:40 +0000 Capitalist Exploits 564545 at The Real Brexit "Catastrophe": World's 400 Richest People Lose $127 Billion <p>For all the scaremongering and threats of an imminent financial apocalypse should Brexit win, including dire forecasts from the likes of <a href="">George Soros</a>, the <a href="">Bank of England</a>, <a href="">David Cameron </a>(who even invoked war), and <a href="">even Jacob Rothschild</a>, something "unexpected" happened yesterday: the UK was the best performing European market following the Brexit outcome.</p> <p><img src="" width="600" height="313" /></p> <p>&nbsp;</p> <p>This outcome was just as we expected three days ago for reasons that we penned in "<a href="">Is Soros Wrong</a>", where we said "in a world in which central banks rush to devalue their currency at any means necessary just to gain a modest competitive advantage in global trade wars, a GBP collapse is precisely what the BOE should want, if it means kickstarting the UK economy."</p> <p>On Friday, the market started to price it in too, and in the process revealed that the biggest sovereign losers from Brexit will not be the UK but Europe.</p> <p>Not only, though. Because as we noted yesterday in "<a href="">Who Are The Biggest Losers From Brexit</a>?", there is an even bigger loser than the EU: <strong>Britain and Europe's wealthiest people. </strong></p> <p><img src="" style="width: 600px; height: 301px;" /></p> <p>Britain’s 15 wealthiest citizens had $5.5 billion erased from their collective fortune Friday after the country voted to leave the European Union. Britain’s richest person, Gerald Grosvenor, led the decline with a loss of $1 billion, according to the Bloomberg Billionaires Index. He was followed by Topshop owner Philip Green, fellow land baron Charles Cadogan and Bruno Schroder, majority shareholder of money manager Schroders Plc.</p> <p>It wasn't just Britain: as <a href="">Bloomberg added overnight</a><strong>, the world’s 400 richest people lost $127.4 billion Friday </strong>as global equity markets reeled from the news that British voters elected to leave the European Union. <strong>The billionaires lost 3.2 percent of their total net worth, bringing the combined sum to $3.9 trillion, </strong>according to the Bloomberg Billionaires Index. The biggest decline belonged to Europe’s richest person, Amancio Ortega, who lost more than $6 billion, while nine others dropped more than $1 billion, including Bill Gates, Jeff Bezos and Gerald Cavendish Grosvenor, the wealthiest person in the U.K.</p> <p>Ironically, it turns out that when George Soros threatened "<a href="">The Brexit crash will make all of you poorer – be warned</a>", what he really meant is "it will make <em><strong>me </strong></em>poorer<strong>.</strong>" And yes, George, the people were warned which is why they voted the way they did. </p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="955" height="479" alt="" src="" /> </div> </div> </div> Bank of England Bill Gates BOE Central Banks Equity Markets European Union George Soros Trade Wars Sat, 25 Jun 2016 12:51:58 +0000 Tyler Durden 564544 at